Loveland MetroLux 14's parent company reported breach in data transmission system in connection with fraud cases

When, how card numbers stolen will be known in about 10 days with release of forensic report

By Madeline Novey Reporter-Herald Staff Writer

Posted:
11/01/2011 11:17:05 AM MDT

Authorities have finally caught a break in their investigations of a banking fraud outbreak that has victimized more than a thousand people in Northern Colorado over the past month.

Metropolitan Theatres, the parent company of Loveland's MetroLux 14, reported to the Loveland Police Department last week an external breach of the local theater's computer system, police said Tuesday.

An unidentified organization executed the computer attack on the data transmission system and stole financial information for use in fraudulent transactions.

MetroLux's system was locked down Oct. 21 when the company's card processing company first noticed an issue. A computerexpert with Metropolitan Theatres has worked since then with forensic analysts to investigate the breach, install new servers and resecure the data entryways at the theater, 6085 Sky Pond Drive.

"People can feel highly confident that people can use their credit cards at our theater," said Phillip Hermann, Metropolitan Theatres' chief financial officer.

MetroLux employees were not involved in the incident, Hermann said, and legally ran credit and debit cards through readers leading up to the breach.

Police do not yet know the number of people affected by this particular breach, Loveland Police Department spokesman Sgt. Mike Halloran said.

Several people who have been interviewed by the Reporter-Herald said they and friends victimized by the fraudsters used their cards recently at the MetroLux. Others, though, did not.

Halloran said police would have a better idea of when and how the criminals obtained card information once Metropolitan Theatres' contracted forensic analysts file a report in the next couple of weeks.

Until then, authorities will continue to investigate the rash of cases that cropped up in Loveland as early as Oct. 8.

The Loveland Police Department tops the charts among surrounding agencies and has taken approximately 600 reports of fraud since then, though numbers were finally tapering off Tuesday, Halloran said. There are also victims across Larimer and Weld counties and in Windsor, Johnstown, Greeley and Firestone, among others.

Several affected agencies met Monday at the Loveland Police Department to pool investigative resources and information, though authorities have collaborated via email and phone from the start.

Police recommend cardholders check accounts regularly. Those who notice suspicious activity should call the customer service number on the back of cards to report fraudulent activity and then file a report with local police.

Cardholders should not give out personal information to unsolicited or unverified organizations or companies.

Those who notice suspicious activity should call the Loveland Police Department at 667-2151.